what will be the tax when service provided with in a state and billing to be done in a different state . customer having registration in both the state. service provided in Karnataka billing to be done on HO Tamilnadu.
30 Replies
renu beel
(4 Points)
Replied 19 July 2017
I think this will be interesting state supply as billing does matter ..pls cnfrm anyone else ..I m new here
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
you mean that you have provided service from Karnataka and you are billing from your ho at Tamil Nadu to customer at karnataka....if I understand you correctly than answer will be as follow -
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
you mean that you have provided service from Karnataka and you are billing from your ho at Tamil Nadu to customer at karnataka....if I understand you correctly than answer will be as follow -
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
you mean that you have provided service from Karnataka and you are billing from your ho at Tamil Nadu to customer at karnataka....if I understand you correctly than answer will be as follow -
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
*in gst law your Karnataka branch and Tamil Nadu ho are distinct person.
*issuing bil is the responsibility of service provider. in you case since bill is issued by ho hence ho will be the service provider and it will be assumed that service is provided by you Karnataka branch to customer on the direction of ho of Tamil Nadu.
*ho will charge igst in the bill to Karnataka customer (assuming place of supply is also Karnataka).
*your Karnataka branch will bill to ho and will charge igst on that....
manaspani
(finance mgr)
(16 Points)
Replied 19 July 2017
dear sir I am service provider , I have provided service in Karnataka I have registered office at Karnataka the recipient is registered in Tamilnadu and Karnataka so recipient wants bill to be on Tn address is that transaction will be charged under CGST or IGST
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
now the query is clear.....in this case location of recipient does not matter at all.....you have to see where the place of supply is......if it is in Karnataka than cgst/sgst will be charged...if the place is outside the Karnataka than igst will be charged.....
now the question is where is the place of supply....for this section 12 of igst declares various provision for different service......you can either read that or you can tell me what service do you provide and I will tell you answer
now the question is where is the place of supply....for this section 12 of igst declares various provision for different service......you can either read that or you can tell me what service do you provide and I will tell you answer
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 19 July 2017
@ Manaspani.,
Your supply of Services to Karnataka. In this situation you ll give bill to Karnataka add and CGST + SGST. But, the recipient want to Bill in his TN add. If you ll be given bill to TN add you charge IGST. Then you can prepare your all documents into TN add is safe.
But, In this situation it's wrong and in future any scrutiny in GST you lock at the time of audit.
So, Further you can consider your customer.
Your supply of Services to Karnataka. In this situation you ll give bill to Karnataka add and CGST + SGST. But, the recipient want to Bill in his TN add. If you ll be given bill to TN add you charge IGST. Then you can prepare your all documents into TN add is safe.
But, In this situation it's wrong and in future any scrutiny in GST you lock at the time of audit.
So, Further you can consider your customer.
Surendra Panwar
(Account officer)
(39 Points)
Replied 19 July 2017
if provided service is repair of motor vehicle then on labour & part either IGST or CGST & SGST
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
@ raja p m......he does not have any branch in th.....he will raise bill from Karnataka........
and I disagree with your opinion of charging gst as it is yet not clear where is the place of supply until he tells the type of service he is providing....
and I disagree with your opinion of charging gst as it is yet not clear where is the place of supply until he tells the type of service he is providing....
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 19 July 2017
Yes Sir...
I know. He is not in TN branch. But, his customer is in Karnataka and TN. He is supply in Karnataka. But, Customer want billing to TN address. Am I right Mr. Akhilesh...
I know. He is not in TN branch. But, his customer is in Karnataka and TN. He is supply in Karnataka. But, Customer want billing to TN address. Am I right Mr. Akhilesh...
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 19 July 2017
If the supplier ll be given and prepare invoice to TN address. ll be charge IGST invoice.
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 19 July 2017
@ raja....bro place of recipient and place of supply are two different things.....place of supply decides whether to charge cgst/sgst or igst, not the place of recipient......
he can send bill from his Karnataka branch to anywhere in the world.....no provision stops him to issue bill to tn .....and for you info it is a general practice that invoices of all brances (related to service) are sent to ho....this is called isd ...input service diatributet
he can send bill from his Karnataka branch to anywhere in the world.....no provision stops him to issue bill to tn .....and for you info it is a general practice that invoices of all brances (related to service) are sent to ho....this is called isd ...input service diatributet
manaspani
(finance mgr)
(16 Points)
Replied 19 July 2017
Dear all it is AMC to customer ,where capital goods is located at Karnataka , it seems customer interested taking input tax credit of IGST so he is insisting billing on TN Address . to my mind service is consumed in Karnataka and place of supply should be Karnataka . pls correct me if I am wrong .
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